Summary of New Investments and Expansion Trends in European Manufacturing

While Europe’s manufacturing sector is often portrayed as being in decline, investment activity tells a more nuanced story. In Central and Eastern Europe in particular, new projects in electric vehicles, batteries, defense, and high-value manufacturing continue to move forward. This article reviews major new investments and expansion projects announced between late 2025 and early 2026, with a focus on Hungary, Poland, the Czech Republic, and Slovakia.

Hungary

  • EVE Energy (China): In Debrecen, EVE Power, a subsidiary of China’s EVE Energy, is constructing a battery cell plant for BMW with an investment of approximately HUF 400 billion (around EUR 1.0 billion). The company has launched a recruitment campaign to hire about 400 engineers and technical staff ahead of the planned start of production in the first half of 2026. The project aims to leverage the local workforce and establish a long-term operational base. https://debrecen4u.hu/eve-power-launches-recruitment-campaign-to-find-400-new-employees/
  • ZF: German automotive supplier ZF Group is investing approximately HUF 10 billion (around EUR 26 million) in Debrecen to launch production of front and rear axle modules for BMW electric vehicles at a new plant. The Hungarian government is also providing support of about HUF 1 billion (around EUR 2.6 million). The project is expected to create 230 new jobs and establish a state-of-the-art EV components production hub. https://www.hungarianconservative.com/articles/current/german-zf-chassis-automobile-investment-debrecen-plant/
  • Mercedes-Benz: Mercedes-Benz announced that it will relocate assembly of its A-Class compact models from its Rastatt plant in Germany to its Kecskemét plant in Hungary starting in Q2 2026. This production reallocation leverages the company’s flexible manufacturing network and shifts output to a lower-cost location, allowing additional capacity for new models in Germany. As a result, Hungary’s role within Mercedes-Benz’s European production network will expand further. https://www.reuters.com/business/mercedes-move-a-class-production-germany-hungary-2026-01-06/
  • Rheinmetall (Germany): German defense and automotive group Rheinmetall completed construction of a hybrid plant (defense and civilian production) in Szeged, southern Hungary, which began operations at the end of 2025. The project represents an investment of approximately EUR 63 million, with initial operations focused on assembly lines for electric mobility components. The company plans to expand employment to around 300 workers and position Hungary as a key “home market” outside Germany for high-performance manufacturing. https://thedefensepost.com/2025/12/29/rheinmetall-hungary-plant/
  • BYD (China): China’s BYD is proceeding with construction of an EV assembly plant in Szeged, southern Hungary. Production-line equipment arrived in December 2025, and trial operations are expected to begin shortly thereafter. The plant is scheduled to enter full-scale operation in 2026, with initial annual output in the tens of thousands of vehicles and a planned long-term capacity of 300,000 vehicles per year. https://www.hungarianconservative.com/articles/current/byd-production-line-equipment-hungary-china/
  • CATL (China): CATL’s large-scale battery plant in Debrecen, representing an investment of approximately EUR 7.3 billion, is expected to begin mass production in early 2026. https://www.reuters.com/business/autos-transportation/chinese-battery-maker-catl-expects-hungarian-production-start-by-early-2026-2025-09-07/
  • Unilever: Anglo-Dutch consumer goods group Unilever is constructing a new deodorant manufacturing facility in Nyírbátor, Hungary, with an investment of approximately HUF 30 billion (around EUR 78.75 million). The plant will produce 150 million aerosol units per year for Eastern European markets. Construction is progressing toward trial operations in summer 2026, and the Hungarian government has provided subsidies of approximately HUF 3.9 billion (around EUR 10.24 million). https://www.hpcmagmea.com/2025/10/13/unilever-invests-usd-89m-in-new-production-facility-in-hungary/

Poland

  • Mercedes-Benz: Mercedes-Benz announced an investment of approximately EUR 360 million at its Jawor plant, where production of the electric eSprinter commercial van will begin in 2026. The project is expected to create around 300 new jobs, positioning the Jawor facility as a key hub within Mercedes-Benz’s European electric commercial vehicle network. https://trans.info/en/mercedes-relocates-422538
  • Windar (Spain): In the renewable energy sector, Spanish manufacturer Windar announced in January an investment of EUR 50 million to build an onshore wind turbine tower factory in Legnica, southern Poland. The facility, covering more than 70,000 square meters, is scheduled to begin operations in late 2026 with an annual capacity of 200 towers (approximately 1 GW), supplying primarily the Polish and German markets. https://renewablesnow.com/news/wind-tower-maker-windar-to-invest-eur-50m-in-new-polish-factory-1288431/
  • Eurenco (France): Against the backdrop of a changing security environment, Poland is seeing increased investment in ammunition and defense manufacturing. The government plans to invest approximately PLN 2.4 billion (over EUR 500 million) to establish three new ammunition plants, including facilities for 155mm artillery shells, in partnership with French explosives maker Eurenco and state-owned defense group PGZ. This initiative forms part of a broader European push to strengthen defense manufacturing capacity. https://www.reuters.com/business/french-eurenco-partners-with-poland-support-domestic-shell-production-2025-10-22/
  • Unilever: In December 2025, Unilever began a PLN 100 million (around EUR 23.8 million) expansion of its food manufacturing plant in Poznań, western Poland. The project includes construction of a large automated warehouse with capacity for 9,600 pallets, new shipping facilities, and redevelopment of more than 25% of the site, with phased completion planned by 2027. The investment reflects confidence in Poland’s workforce skills and logistics infrastructure. https://millingmea.com/unilever-to-invest-in-food-production-facility-in-poland/
  • LG Energy Solution (South Korea): Poland is one of Europe’s largest EV battery production hubs, and LG Energy Solution (LGES) has launched a new energy storage system (ESS) battery production line at its facility near Wrocław in late 2025. The site already produces batteries for around 1 million EVs per year, making it Europe’s largest battery factory. LGES will supply batteries for a large-scale ESS project (263 MW / 981 MWh) operated by state-owned utility PGE. Additional investments include new production lines for cylindrical cells and LFP (lithium iron phosphate) batteries, reinforcing Poland’s role as a strategic center for advanced battery technologies and recycling initiatives. https://successful-investing-in-poland.com/lg-energy-solution-expands-its-operations-in-wroclaw-investment-in-energy-storage-facilities/

Czech Republic

  • onsemi (United States): In November 2025, the European Commission approved EUR 450 million in state aid for onsemi’s next-generation semiconductor manufacturing project in Rožnov, eastern Czech Republic. The company plans to invest a total of EUR 1.64 billion to establish an integrated production facility for silicon carbide (SiC) power semiconductors, targeting electric vehicles, renewable energy systems, and AI data centers. The plant will be built adjacent to existing crystal growth and chip production facilities and is positioned as a strategic project to strengthen Europe’s semiconductor supply chain. https://czechinvest.gov.cz/en/Homepage/Novinky/Listopad-2025-(1)/European-Commission-approves-Czech-state-aid-for-s
  • Gold Cup Electric (China): Chinese electrical equipment manufacturer Gold Cup Electric announced in December 2025 that it will establish its first European manufacturing facility in Plzeň, western Czech Republic. The project involves an investment of more than CZK 2 billion (around EUR 82 million), converting a former food-processing site into a state-of-the-art plant producing magnetic conductors for transformers, electric motors, and new energy applications. The factory is scheduled to begin operations in 2026, and the Czech investment authority has welcomed the project as an example of production moving closer to European demand centers. https://czechinvest.gov.cz/en/Homepage/News/December-2025/Chinese-company-Gold-Cup-begins-European-expansion,-will-establish-a-magnetic-conductor-factory-in-C

Slovakia

  • Gotion High-Tech (China): In late October 2025, Gotion High-Tech broke ground on Slovakia’s first EV battery gigafactory in Šurany, western Slovakia. The large-scale facility will cover 65 hectares and is planned to have an initial annual capacity of 20 GWh. Trial operations are expected in 2026, followed by full-scale production in 2027. The first phase alone is expected to create approximately 1,300 jobs, with most output supplied to next-generation EV manufacturers across Europe. The project represents a landmark step in strengthening Central Europe’s battery supply chain. https://autonews.gasgoo.com/articles/news/gotion-high-tech-launches-slovakias-first-battery-gigafactory-70039650

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